Legal Question in Bankruptcy in California

My husband and I have filed for bankruptcy 7 in California three months ago. We have gone to court, but have not received a discharge as of yet. Our intent when we first started the bankruptcy process was to keep our vehicle, but we are no longer able to afford it and would like to include in the bankruptcy now. A rep @ our attorney's office advised us that we should not pay the additional cost to add the vehicle to the bankruptcy ($250.00) now, but simply call the lender and request a voluntary surrender through bankruptcy. Which I have done and they have agreed to pick up the vehicle. How will this be reported to credit bureaus? Will the deficiency on the vehicle show as discharged and will it be reported as included in bankruptcy? Can the lender still come after us for the deficiency? Should I pay the $250.00 and insist that they added the vehicle to my bankruptcy. We were told we should be getting a discharge sometime at the end of this month.


Asked on 7/02/10, 9:47 am

2 Answers from Attorneys
Asaph Abrams Law Office of Asaph Abrams

The vehicle loan should have been listed in your filed bankruptcy papers regardless of your intent at the time regarding its retention or surrender. As long as you have not signed a reaffirmation contract with the lender (that has been filed and has passed any time limit for revocation), then you will not be liable for the deficiency assuming there is no objection to discharge of the debt.

Read more
Answered on 7/02/10, 12:56 pm
Robert F. Cohen Law Office of Robert F. Cohen

It will cost you nothing to file an amended Statement of Intentions (unless the $250 is for your attorney). Certainly, the lender should have been listed as a secured creditor. That will cost you $26 to amend (plus attorney's fees). Also, I hope you've taken the required financial management course, necessary to receive your discharge.

Read more
Answered on 7/02/10, 2:10 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in California